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AB has owned 80% of CD for 6 months. The revenue of AB for the year is $650,000 and for CD it is $320,000. AB has sold goods to CD throughout the year and the total amount is $24,000. What is the revenue figure to be included in the consolidated statement of profit or loss for the year?
My answer 754,000
I don’t think that is the correct answer. It is a mid-year acquisition so you need 650,000 + 160,000 – 12,000. You need to pro-rate S’s figures due to the 6-months.